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What is a payroll authorization form?
Payroll authorization forms are one of the documents that employers, specifically the company's human resource and finance department staff members, use for gathering the details of employees who would like to change or update their payroll information.
What does payroll deduction mean?
Payroll deductions are wages withheld from an employee's total earnings for the purpose of paying taxes, garnishments and benefits, like health insurance. These withholdings constitute the difference between gross pay and net pay and may include: Income tax.
What are illegal payroll deductions?
Some common payroll deductions often made by employers that are unlawful include: Gratuities. An employer cannot collect, take, or receive any gratuity or part thereof given or left for an employee, or deduct any amount from wages due an employee on account of a gratuity given or left for an employee.
How do you account for payroll deductions?
Debit "Wages Expense" for the full amount the company must pay for the pay period.
Credit "Net Payroll Payable" and any deductions required.
Add the total number of debits and then add the total number of credits.